Dovish – An expansionary monetary policy that supports lower interest rates intending to stimulate economic growth.
Hawkish – A restrictive monetary policy that supports higher interest rates to bring inflation under control.
Headwinds/ tailwinds – Headwinds are factors likely to negatively affect a company, tailwinds on the other hand are likely to have a positive impact.
Initial Public Offering (IPO) – Where a private company is floated on a stock exchange for the first time, offering shares to the public.
Operating leverage – Refers to the degree to which a company can use fixed costs to generate greater profits as sales increase.
Reflationary – A policy that is designed to stimulate a rise in prices, or inflation, within an economy. This is typically done through increasing the money supply.
Return on Capital Employed (ROCE) – Can be calculated in multiple ways. However, the most well-known approach is to take earnings before interest and taxes and divide them by capital employed. ROCE measures how well a company can create profit from the capital it uses.
Stagflation – Is an economic cycle which is characterised by high inflation, high unemployment and slow growth.
